SC calls for list of loan waiver beneficiaries

Supreme Court says all illegal loan waivers to be recovered, waiver policy to be tested under Article 25.

ISLAMABAD: The Supreme Court on Tuesday sought a list of people who had their loans waived off during the last two years and asked the government to explain the policies under which the waivers were made.

During a hearing, the Chief Justice remarked that the Supreme Court would ensure the recovery of all loans written off illegally and test the policy on the touchstone of Article 25 of the constitution. Article 25 states that ‘All citizens are equal before law and are entitled to equal protection of law.’

He also said that the Governor State Bank of Pakistan will also be summoned for an explanation.

During the hearing, the finance minister told the court that most of the loans had been written off by private banks. However, the chief justice refused to accept that private banks can waive off loans, saying they fall under the domain of the State Bank of Pakistan.

A consortium of 37 banks represented by Salman Akram Raja will explain the right of the waiver policy to the court tomorrow.